" If you go back 40 years ago, total debt in America was sitting at about 2.2 trillion dollars. Somehow over the past four decades we have allowed the total amount of debt in the United States to get approximately 27 times larger."

Thursday, 19 June 2014

And so we have a series of geniuses: Greenspan who said that the very
concept of a national housing bubble in the US was impossible just as
the national housing bubble was inflating to monstrous proportions;
Bernanke who said that the consequences of sub-prime lending were
“contained” just as the consequences of subprime lending were eating up
the banks from the inside out; and Yellen who now told us that
complacency is nothing to worry about.
So we sally deeper into the Yellen era, which is the same as the
Bernanke era, in that the Fed – and other central banks, for that matter
– is the only thing worth looking at. Central banks rule. Practically
nothing else matters. Metrics and ratios are just for decoration.
Markets as a means of price discovery no longer exist.

Tuesday, 17 June 2014

"It is true that the world and humanity face major problems that must be
addressed — even in terms of pseudo-capitalists exploiting the
population via government to benefit themselves. The root of those
afflictions, though, has been deliberately misdiagnosed by the bigwigs
who met in London. The prescriptions offered at the Rothschild summit
will only lead to more exploitation, more tyranny, more centralized and
less accountable government, more unearned wealth for the establishment,
and more human misery. What humanity really needs are freer markets,
honest money as opposed to cartel-owned central-banking scams, honest
government, more freedom, more faith, and respect for individual rights"

"In 1977, the Bank set up a wholly owned subsidiary called Bank of
England Nominees Limited, (BOEN), a private limited company, with 2 of
its 100 £1 shares issued. According to its Memorandum & Articles
of Association, its objectives are:- “To act as Nominee or agent or
attorney either solely or jointly with others, for any person or
persons, partnership, company, corporation, government, state,
organisation, sovereign, province, authority, or public body, or any
group or association of them….”

Bank of England Nominees Limited was granted an exemption by Edmund
Dell, Secretary of State for Trade, from the disclosure requirements
under Section 27(9) of the Companies Act 1976 , because, “it was
considered undesirable that the disclosure requirements should apply to
certain categories of shareholders.” The Bank of England is also
protected by its Royal Charter status, and the Official Secrets Act.

In other words, you and I are not allowed to know who the shareholders
are who own the company which carries out Central Banking in the UK.
Some people say that Mandelson's buddies, the Rothschilds are major
shareholders. Also the Queen. But the information is secret. We are
not allowed to know."

I dont know if it will pan out like this but I do believe that next time it regains the 200 dma UK investors need to be holding gold.........there is a huge dichotomy between MSM enthusiasm for the "recovery" and the real state of things,especially if Jim Willie is even half right (see video in previous post)

The combination of central banking, macro-economic theories, ambitious bureaucracies
and gullible politicians has created a century of chronic and massive currency
depreciation. The consequence has been a series of dislocating asset inflations.
Initially, the Fed's job definition was to prevent financial convulsions that
precipitated recessions. There have been 18 bear markets and recessions since
the Fed opened its doors in 1914.
Despite the sorry record, the establishment has never doubted the perfection
of the Federal Reserve System. On the inevitable Classic Crashes such as in
1929, the Fed was not criticized but those running it got the blame. Blame
the guy, not the system.

" According to The Independent
on Sunday, a new study of the bank, which brought the UK to the brink
of financial ruin, reveals RBS still has a £100 billion “black hole” in
its finances due to “five broad areas of alleged criminality and
wrongdoing”.

Financial journalist Ian Fraser, who wrote Shredded: Inside RBS, The Bank That Broke Britain, said: “The result has been that, at the time of writing, RBS is probably a worse bank than it was under Fred Goodwin.” "

"New highs in small caps, new highs in leverage, a reversal out of
defensive sectors and assets, and/or repairs to volume and breadth would
make me abandon that ‘best fit’ and conclude that the sun is not yet
done with its speculation incitement. Whilst I can’t rule out a more
definitive, crazy parabolic to erupt here, as has been typical at
historic solar maxima, I just doubt it because of the lack of
demographic support combined with the levels already reached in the
likes of margin debt, rydex, valuations, investors intelligence and
more. If a sharp terminal up-leg can actually occur from here on
continued low volume, without the need for a stream of new buyers, then
it would be a game of confidence in which the fear of losing out on
stellar gains drives prices higher in a feedback loop despite
participants knowing it is manic and unsustainable. If that were to
occur then it would make the ultimate correction even bigger, but prior
to that it would be a challenge to both bulls and bears: play the danger
or suffer the drawdown. What seems clear though from history is that
leverage would need to accompany such rises, and it appears that
leverage already peaked out. However, there is a possible middle path,
in which prices can eek out some more gains in June/July whilst not
straying too far and honouring most of the above."